Did you know that Short Term Caveat Loans turn equity into cash overnight? Let me explain. Have you ever had the deal of a lifetime come up, and you haven’t had the money to take advantage of it? You have that stress of thinking that your competitor will get the opportunity, simply because you couldn’t raise the capital quick enough.
Then of course there is the profit you are not going to make. Once again because you could not raise the capital, or you didn’t have the funds in the bank.
The most frustrating part is you have loads of equity in real estate. However, you can’t use that equity to pay for this golden business opportunity. There are some business owners with millions of dollars in equity tied up in real estate. However they can’t turn that equity into cash overnight.
Well, that is where they are wrong.
Short term caveat loans are the fastest way to access the equity in your house or commercial property. A Caveat loan is simply a secured business loan that uses the equity in your property. It enables you to get the funds you need within a day or two.
A caveat lender simply assesses how much your property is worth and what is currently owed on that property to your first mortgage. The lender will then lend against the remaining equity in the property. Caveat Loans can even be used for urgent property purchases.
Most caveat lenders will end up to 75% LVR.
Let’s talk Equity
What is LVR? LVR stands for Loans to Valuation Ratio. The lvr is calculated by dividing the current 1st mortgage loan amount into the value of the property. That figure is then the LVR.
So, if your property is worth $1,000,000. And you owe. $400,000. Your LVR is 40%. As most caveat lenders will lend up to 75% lvr, this would mean you could borrow $350,000.
So, in this example, a business client could come to a caveat lender and access $350,000 against their property within one business day.
How good is that? You urgently need $350,000 but you do not have it.
So, you go to a short-term caveat lender and access the equity in your property within 24 hours. Then you can get the money you need to take snap the opportunity up. The trusty reliable Short Term Caveat Loans turn equity into cash overnight.
Caveat loans are from one to six months in duration and in most cases. But you will need an exit strategy. An exit strategy is simply just a way of how you will pay the loan back in a short space of time.
The most common exit strategy is refinance of both the current first mortgage debt and the caveat loan.
A good caveat lender will capitalise is the interest in the costs for the duration of the loan. This means you do not have to pay anything back during the term of the loan. It is all paid back in one payment at the end.
A caveat loan is a perfect solution for when you need to access funds unexpectedly and, in a hurry, to take advantage of the opportunity of a lifetime or to avoid a major crisis. Keep in mind that the costs and interest of a caveat loan fully tax-deductible. To see how much you can access against your property, click HOW MUCH CAN I BORROW?